Just over a week ago silver rallied over 3% in a single session and (rather surprisingly, I thought) managed to build on those gains the following day. This took it above $16 per ounce to take it to its highest intra-day level since October last year. Today’s rally, from last night’s close to the high (so far) clocks in at over 5%. This is a stunning move for any market, but one that long-time speculators in silver are used to – in both directions.
Silver has now gained 14% in two weeks and its next upside target must be the $17.79 high hit in May last year. However, it may need to back up and consolidate first. Mind you, it still has a long way to go to if it’s to challenge its all-time nominal high from April 2011 when it came close to $50 per ounce. Is that likely? Looking at the chart it doesn’t look remotely possible. But if central bankers resort to the infamous “QE for the people” or “Helicopter Drop” of monetary stimulus as posited by Milton Friedman and Ben Bernanke amongst others, then anything is possible.
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